Finding 1168651 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-01-09

AI Summary

  • Issue: The Company failed to submit its financial information to REAC within the required nine-month timeframe after its fiscal year end.
  • Impact: This delay means the Company is not in compliance with HUD's audit submission requirements.
  • Follow-up: Ensure future electronic submissions to REAC are filed on time to meet the nine-month deadline.

Finding Text

Criteria: HUD requires that any company required to have an audit under its requirements is also required to submit its financial information electronic submission to REAC within nine months of its year end. Condition: The Company’s electronic submission to REAC was not filed within nine months from the end of Its fiscal year. Cause: Delays in completion of audit procedures resulted in the audit report not being issued on a timely basis. Therefore, the Company’s 2024 REAC electronic submission was not completed within the nine months of the end of its fiscal year end. Questioned Costs: None noted. Context: When performing our audit we noted that the electronic submission of financial information to REAC was not filed on a timely basis. Effect: The Company was not in compliance with the requirement to complete the filing of the Company’s electronic submission to REAC within nine months of its year end. Recommendation: We recommend that the Company’s electronic submission to REAC be filed within nine months of its year end as required.

Corrective Action Plan

Reconciliations of accounting records will be completed before the beginning of the audit to avoid future delays

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1168648 2024-001
    Material Weakness Repeat
  • 1168649 2024-002
    Material Weakness Repeat
  • 1168650 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $17.25M
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $2.64M